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401K rules in the news
Old 08-03-2010, 03:57 PM   #1
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401K rules in the news

Just throwing this new thread in to draw attention to some changes in rules and hoping for more.
Check it out. I would have loved to have had acess to some of the cool government funds, like some of you all have. Although since I'm already retired it probably want help me.
Steve

Why New Rules for 401(k) Fee Disclosures Don't Go Nearly Far Enough - DailyFinance
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Old 08-03-2010, 10:16 PM   #2
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"Advisers Should Be Fiduciaries"

I like this statement. If they aren't fiduciaries, they should be called financial salesman instead of financial advisors.



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Old 08-03-2010, 11:25 PM   #3
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"Advisers Should Be Fiduciaries"

I like this statement. If they aren't fiduciaries, they should be called financial salesman instead of financial advisors.


Yes, I would like to see a lot of changes to help the average investor establish his/her retirement account more safely.
Steve
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Old 08-04-2010, 04:15 AM   #4
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IMO... 401ks are a very poor implementation of personal retirement account. The law should be rewritten to enable employees to control the account directly and invest wherever they choose (like an IRA).

Often the mutual fund choices in 401ks have very high fees.
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Old 08-05-2010, 08:47 AM   #5
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Originally Posted by chinaco View Post
IMO... 401ks are a very poor implementation of personal retirement account. The law should be rewritten to enable employees to control the account directly and invest wherever they choose (like an IRA).

Often the mutual fund choices in 401ks have very high fees.
So, you want to drive Principal and the rest of the insurance companies out of the 401K market? I'm good with that!!
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Old 08-05-2010, 08:53 AM   #6
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Originally Posted by Helen View Post
"Advisers Should Be Fiduciaries"

I like this statement. If they aren't fiduciaries, they should be called financial salesman instead of financial advisors.
Gee, the insurance industry won't like that one bit!
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Old 08-05-2010, 02:30 PM   #7
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I've always been lucky to have funds available to me in my 401k that had low fees but I realize that is relatively rare. I think the criticism though is on employers. They are the ones who choose which funds to offer to employees (or at least which option to select from a prepackaged plan).

I was once involved in setting up/selecting the 401k plan for a small company I worked for. We were a startup but eventually grew to about 300 people before I left. There were 4 of us charged with selecting the administrator and fund family for our plan. We focused on low fees but eventually had to select Pimco (no load fund class though) because Vanguard and the other low fee families did not want to work with us because we only had 20 employees at the time. But Pimco was a decent choice compared to the alternatives. It seemed that only the high fee insurance companies had much interest.

When the company grew to about 150 employees they switched to an insurance company and things went downhill fast with the 401k! I left (for unrelated? reasons) about that time. That decision was but one boneheaded change that some new "leadership" brought in.

The bottom line is that there is no one to blame but the company when only high load funds are offered in the 401k!
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Old 08-05-2010, 03:30 PM   #8
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I've always been lucky to have funds available to me in my 401k that had low fees but I realize that is relatively rare.
relatively rare? My daughter's 1st job 401-K had ONLY front-loaded funds ~5% !!!
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Old 08-08-2010, 01:56 AM   #9
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relatively rare? My daughter's 1st job 401-K had ONLY front-loaded funds ~5% !!!
The front-end load is usually waived for a 401k plan.
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Old 08-08-2010, 07:13 AM   #10
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IMO... 401ks are a very poor implementation of personal retirement account. The law should be rewritten to enable employees to control the account directly and invest wherever they choose (like an IRA).

Often the mutual fund choices in 401ks have very high fees.
If you don't like the choices in your 401k, can't you periodically roll the balance over to an IRA, in which you may invest as you please?
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Old 08-08-2010, 08:12 AM   #11
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If you don't like the choices in your 401k, can't you periodically roll the balance over to an IRA, in which you may invest as you please?
Only if you quit your job.
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Old 08-08-2010, 06:12 PM   #12
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Only if you quit your job.
TJ
This guy says it might be possible, even while still working, if you are 59 1/2

In Service Distribution- 401k Rollover While You’re Still Working

and this guy says you can roll over the employer match portion.

Can I rollover my 401k while still employed? | Accumulating Money


I don't know if either one is correct.
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Old 08-08-2010, 06:54 PM   #13
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If you don't like the choices in your 401k, can't you periodically roll the balance over to an IRA, in which you may invest as you please?
I don't know of any law prohibiting in-service rollovers. Having said that, very, VERY few employer plans allow it.
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Old 08-08-2010, 07:20 PM   #14
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IMO... 401ks are a very poor implementation of personal retirement account. The law should be rewritten to enable employees to control the account directly and invest wherever they choose (like an IRA).

Often the mutual fund choices in 401ks have very high fees.
Not to get religious but: Amen
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Old 08-08-2010, 08:43 PM   #15
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This guy says it might be possible, even while still working, if you are 59 1/2

In Service Distribution- 401k Rollover While You’re Still Working

and this guy says you can roll over the employer match portion.

Can I rollover my 401k while still employed? | Accumulating Money


I don't know if either one is correct.
Both are correct IF the plan allows it. However, for your own contributions and their earnings, and if you are under 59-1/2, no qualified plan can possibly allow it until you leave the job because it's against the law.
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Old 08-09-2010, 12:27 AM   #16
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Both the plan at DH's employer and at my small employer allow rollovers of employer contribution. DH's employer allowed rollover of everything once he was 59 1/2.
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Old 08-09-2010, 03:05 AM   #17
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Both DW and I were lucky with our 401(k)'s in that we had reasonable choices most of the time and with low fees.

However our son's 401(k) has a very limited selection and high annual fees (in the order of 1.5%) although the front end loads were waived. He has no interest in investing and really needed there to be a Target Retirement fund.

He has a company match so he contributes enough to get the match and then puts other RE savings into a VG Roth.
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